RES-11198 WDEA LOU 1-1-20 thru 12-31-2022RESOLUTION NO. 11198
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ORANGE ESTABLISHING A
LETTER OF UNDERSTANDING BETWEEN
THE CITY OF ORANGE AND THE WATER
DIVISION EMPLOYEES' ASSOCIATION
EFFECTIVE JANUARY 1, 2020 THROUGH
DECEMBER 31,2022.
WH REAS,the City of Orange, hereinafter referred to as "City,"and the Water Division
Employees' Associarion, hereafter referred to as the "Association" have met and conferred in
accordance with the requirements of the Meyers-Milias-Brown Act; and
WHEREAS,the CiTy and the Association have reached agreement on wages, salaries, and
other terms and conditions of employment effective January 1, 2020 through December 31, 2022;
and
WHEREAS,the CiTy Council of the City of Orange has consulted with the Assistant City
Manager and Human Resources Director concerning the proposed employment terms contained in
the attached Letter of Understanding.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the CiTy of Orange
that the attached Letter of Understanding is approved and incorporated by reference as Exhibit
A „
ADOPTED this 10`h day of December 2019.
Mark . Murphy, Mayor, 'it of Orange
EST:
P ela Coleman, City lerk, CiTy of Orange
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF ORANGE
I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do hereby certify
that the foregoing Resolution was duly and regularly adopted by the City Council of the City of
Orange at a regular meeting thereof held on the l Oth day of December 2019,by the following vote:
AYES: COUNCIL MEMBERS: Alvazez, Murphy,Nichols
NOES: COiJNCIL MEMBERS: None
ABSENT:COiINCIL MEMBERS: Monaco
ABSTAINED: COiTNCIL MEMBERS: None
yy1 pi.1'O.m r.,,,
c
Pamela Coleman, City Clerk, City of Orange
Resolution No. 11198 2
EXHIBIT "A"
A LETTER OF UNDERSTANDING
BETWEEN THE CITY OF ORANGE AND THE
WATER DIVISION EMPLOYEES' ASSOCIATION
EFFECTIVE JANUARY 1,2020 THROUGH DECEMBER 31,2022
This Letter of Understanding ("LOU") is entered into by and between the City of Orange and
the Water Division Employees' Association.
Recitals
A. The City of Orange (hereafter, "City") and the Water Division Employees'
Association ("Association") hereby enter into this LOU effective January 1, 2020.
B. The parties agee to incorporate the language addressed in this LOU into a new
Memorandum of Understanding ("New MOU"), once both parties have the opportuniTy to
review and concur on any and all language changes that will become part of the New MOU.
A New MOU document will be presented to the CiTy Council at a future meeting for its
approval.
C. All references to the "MOU" in this LOU shall be to that Memorandum of
Understanding by and between the CiTy and the Association adopted by City Council
Resolution No. 11059. Except as to those provisions which expressly expired and/or those
provisions expressly addressed by this LOU, the terms and conditions of the MOU remain
operative until the New MOU is approved and adopted.
Aereement
1. Term and Effective Date
The term of this LOU shall be from January 1, 2020 to December 31, 2022 and will become
effective upon ratification by the Association membership and approval of the City Council.
2. Salary fAttached as Aaaendix 00A")
Effective Januazy 5, 2020, implement a 3% across the board base salazy increase.
Effective January 3, 2021, implement a 3% across the boazd base salazy increase.
Effective January 2, 2022, implement a 3% across the board base salary increase.
3. Certification Bonus
Modify Article III, Section 10(B) and Section 10(C)to read as follows (Existing B to become
new D):
Resolution No. 11198 3
B. State of Califomia Department of Health Services Water Treatment Certification:
1. Employees who possess a Grade 2 Water Treatment Certificate (T-2) shall receive a
flat$75.00 per month bonus.
2. Employees who possess a Grade 3 Water Treatment Certificate (T-3) shall receive a
flat$150.00 per month bonus.
C.An employee who possesses two (2) or more of the above certifications is eligible for
cumulative bonus compensation.
4. Acting Pav (Workine out of Classl (MOU Article IXl
Modify Article IX, Sections 2 and 3 of the existing MOU and bifurcate Acting Pay/Working
out of class pay to Temporary Upgrade Pay and Out-of-Class Appointment Pay to be consistent
with Ca1PERS criteria. New Sections 2 and 3 to read as follows:
SECTION 2. Acting Time Pak An employee shall receive acting tune pay, as Purther defined
below, at "A" Step of the higher class, or 5% above the employee's regular salary, whichever
is greater, for work performed in the higher classification on the 11`h consecutive day out of
class,and for each consecutive day thereafter an employee works out of class. The Department
Head or his designee shall assign the employee to work out of classification but shall notify
the Human Resources Director prior to the assignment.
A. Temporary Unerade Pak When an employee is working out of classification due to an
incumbenYs approved leave of absence, said employee shall receive Temporary
Upgrade Pay. Temporary Upgrade Pay, as defined by California Code of Regulations
571(a)(3), is "compensation to employees who are required by their employer or
governing boazd or body to work in an upgraded position/classification of limited
duration."
The above form of compensation shall be reported to Ca1PERS as special compensation
and ttterefore compensation eamable. However, Temporary Upgrade Pay will not be
reported to Ca1PERS as pensionable compensation for"new members"hired on or after
January 1, 2013, as defined by the Public Employees' Pension Reform Act of 2013
PEPRA).
B. Out-of-Class Appointment. Out-of-class appointments shall only be made for positions
vacated due to voluntary resignation, promotion, demotion or termination. Gov. Code
section 20480 of the Public Employees' Retirement Law (PERL) defines an "out-of-
class appointment" to mean an appointment to an upgraded posiUon or higher
classification by an employer or governing board or body in a vacant position for a
limited duration. For purposes of this section, a "vacant position" refers to a position
that is vacant during recruitment for a permanent appointment. A vacant position does
not refer to a position that is temporarily available due to another employee's leave of
absence (see "Temporary Upgrade Pay" above).
Resolution No. ll 198 4
SECTION 3. Eli ib iliTy Period. During the 10 consecutive working day eligibility period
before an employee is entitled to receive acting time pay, absence for compensatory time
and/or vacation shall break consewtiveness and cause the 10 consecutive working day
eligibility period to start over. Absences for regularly scheduled holidays, regulaz days off,
jury duty,and/or verifiable sick leave shall not constitute a break in consecutiveness for acting
pay eligibiliTy.
5. Promotion From Actina into Permanent Posifion (MOU Artide IX, Section 41
Modify Article IX, Section 4 of the MOU to read as follows:
SECTION 4. Promotion from Acting into Permanent Position. An employee who is promoted
from an acting position to that same position on a permanent basis shall receive credit for time
served while acting in that position, towards any applicable probationary period for the
permanent position, up to a maximum of six months.
6. Overtime/Compensatory Time/Call Back(MOU Article X, Sections 12)
Modify Article X, Section 12 to add Subsection B of the MOU to read as follows (Existing
language to become new A):
B. If the return to work is scheduled at least 24 hours prior, then the employee shall receive a
minimum of 2 hours of overtime. If the retum to work is not scheduled at least 24 hours
prior, or unscheduled, then the employee shall receive the minimum 2 %z hours as noted
above.
7. Vacation Conversion (MOU Article XII, SecHon 3)
Modify Article XII, Section 3 to read as follows:
Effective July 1, 2019, an employee may convert up to 50% of his current annual vacation
accrual into cash in lieu of time off with pay during the 2019-2020 fiscal yeaz. An employee
requesting such a conversion must meet the eligibility requirements as set forth in Section 2,
and may so convert twice during the 2019-2020 fiscal year.
Effective July 1, 2020, an employee may convert up to 50% of his current annual vacation
accrual into cash in lieu of time off with pay during the 2020-2021 fiscal year. An employee
requesting such a conversion must meet the eligibility requirements as set forth in Section 2,
and may so convert twice during the 2020-2021 fiscal year.
Effective July 1, 2021, an employee may convert up to 50% of his current annual vacation
accrual into cash in lieu of time off with pay during the 2021-2022 fiscal year. An employee
requesting such a conversion must meet the eligibility requirements as set forth in Section 2,
and may so convert twice during the 2021-2022 fiscal yeaz.
Resolution No. 11198 5
Effective July 1, 2022, an employee may convert up to 50% of his current annual vacation ,
accrual into cash in lieu of time off with pay during the 2022-2023 fiscal year. An employee
requesting such a conversion must meet the eligibility requirements as set forth in Section 2,
and may so convert twice during the 2022-2023 fiscal yeaz.
8. Sick Leave (MOU Article XIV. Section 41
Modi£y Article XIV, Section 4(J) to read as follows:
1) Eligible employees with sick leave usage of 0.0 to 36.0 hours per payroll calendaz year
will have the option to convert 30 hours of their unused sick leave to vacation in the
first pay period of the following yeu.
2) Employees with sick leave usage of 3625 to 45.0 hours per payroll calendaz yeaz may
convert 20 hours of unused sick leave to vacation in the first pay period of the following
yeaz.
3) Employees must have a minimum balance of 140 hours of sick leave available after
conversion.
4) Sick leave used under FMLA shall not be counted towazds an employee's sick leave
conversion to vacation total.
9. Retirement Health Savinas Plan Trust (MOU Article XIV. Section 4 and Article XVI.
Section 5
Modify Article XIV, Section 4(H) to read as follows:
H. Retirement from City Service and Enterine the Public Employees' Retirement System
Upon retiring from City service and entering the Public Employees' Retirement System,
an employee shall receive no pay for the first 60 days of accrued sick leave (0-480 hours),
but shall receive 25°/a pay for the first 30 days of accrued sick leave after the first 60 days
of accrued sick leave (481-720 hours), and 50% of all accrued sick leave thereafter (721-
960 hours). In lieu of receiving pay, 100%of the eligible accrued Sick Leave cashout value
upon retirement shall be contributed into the employee's Retirement Health Savings Plan
Trust account, in accordance with Article XVI, Section 5, below.
Establish Article XVI, Section 5(A) to read as follows:
A. The City shall establish a Retirement Health Savings Plan (RHSP) trust. In lieu of
receiving pay, 100% of eligible accrued Sick Leave cashout value upon retirement from
City service and entering the Public Employees' Retirement System in accordance with
Article XIV, Section 4(H).
Resolution No. 11198 6
10. Health Insurance (MOU Article XVI, Sectiou 1)
Modify Article XV I, Section 1(A)of the MOU to increase the Ciry's monthly retiree premium
contribution to $139.00 and adjust annually thereafter as determined by the Ca1PERS Board of
Administration.
Modify Article XVI, Section 1(B) of the MOU to increase the CiTy's monthly contributions as
follows:
Current 995.00 $1,370.00 $1,595.00
Janu 1, 2020 $1,020.00 $1,420.00 $1,670.00
Janu 1, 2021 $1,045.00 $1,470.00 $1,745.00
Jan 1, 2022 $1,070.00 $1,520.00 $1,820.00
Modify Article XVI, Section 1(E) of the MOU to reflect:
Employees hired after January 1, 2020 who elect to waive medical insurance shall receive
400.00 per month. Employees with a hire date prior to January 1, 2020 shall remain at the
amount of$995.00.
11. PERS Leve14 Survivor Benefit(MOU Article XVIII, Section 51
Modify Section XVIII, Section 5 ofthe MOU to read as follows:
The City will provide the PERS 1959 Survivor Benefit at the Third Level Option for
miscellaneous members. The City shall increase the 1959 Survivor Benefit to the Fourth Level
Option (Califomia Govemment Code Section 21574) for miscellaneous members;
miscellaneous members shall pay their$2.00 monthly contribution through payroll deduction.
The City shall pay the employer portion subject to the following limit: In the event the
employer portion exceeds $6.00 monthly,miscellaneous members agree to pay any portion of
the employer portion that exceeds $6.00 monthly. This benefit shall be contingent upon all
affected bargaining units contractually agreeing to this provision.
12. Clothine Reimbursement Allowance(MOU Article XIX, Section 51
Modify Article XIX, Section 5(C) of the MOU to read as follows:
The City shall reimburse employees for the following articles of clothing which aze to be worn
on the job; blue work pants (including but not limited to blue jeans, Dickies, Red Cap), white
crew socks, white walking socks, and two (2)pairs of shorts per yeaz.
The following articles of clothing aze not considered reimbursable clothing under this MOU:
polo shirts, T-shirts, jackets, windbreakers, dress socks, dress slacks, and other types of
clothing not specifically reimbursable under the above guidelines.
Resolution No. I 1198 7
13. Limited Reonener(MOU Article XXXIID
Modify Article XXXIII to add new Section 2 into MOU as follows:
Either party can reopen Article III and Article XII, Section 3 of the MOU for negotiations
during the 2020-2021 or 2021-2022 fiscal yeazs through a limited reopener subject to the
requirements set forth in this article. In order for either party to invoke this limited reopener:
1) There must be a fiscal year-over-yeaz (from 18-19 to 19-20) increase/decrease in Water
Fund operating revenue received by the city greater than 10%, and 2) Either party must
provide in written notice of its request and intent to reopen MOU negotiations for this limited
purpose in writing to either party during the following dates: June 15, 2021 through July 15,
2021, or December 15, 2021 through January 15, 2022. Upon receipt of such timely request,
the parties agree to meet and confer in good faith on the article requested for reopening. Any
changes to the MOU azising out of this limited reopener shall be by mutual written agreement.
It is the expressed intent of the parties that the language pertaining to this limited reopener is
included in the current MOU only and expires December 31, 2022. Any inclusion of a like
or similaz article in future MOUs will be subject to the meet and confer process.
14. Emulovee Handbook
The City to present a drafr of an updated Employee Handbook.
15. Laneuaee Chan¢es
Implement mutually agreed language clean-up to conform MOU to current practices or
agreements.
16. Status of MOU
Except as specifically provided and amended herein, the terms and conditions of the MOU
shall govem the provisions of wages, salaries and other benefits for all covered employees.
This LOU shall not be interpreted to extend and/or limit any other rights, benefits, or
compensation of either party except as specifically provided herein and both this LOU and the
new MOU shall expire on December 31, 2022.
Resolution No. I 1198 8
City of Orange Water Division Employees'
Association
Dated:
vv////Zv
Dated: C 2 ` a'LC3
By'
G " / 6
By'
Monica Espinoza, Human Resources Director nan Nie aus, soi
By: N/nl i r'"'
r
By:
Will Kolbow, Assistant City Manager Terry Remyn, President
By: CWV' By: /l/%i Oi
Cody K} en, Human Resources Analyst II ioMrValdez,Vice President
By:By: .
Aaron Schu e, Senior ' istrative Analyst athan Gosselin, Secretary
By: T.,z, i,.
Victor Campos, Treasurer
Approved as to form:
ary A. h tz, City i
Resolution No. 11198 9
APPENDIX "A"
WATER DIVISON EMPLOYEES' ASSOCIATION
MONTHLY SALARY RANGES
EFFECTIVE JiTNE 26,2016
2.0% Across the Board Salary Iucrease
NEW STEP STEP STEP STEP STEP STEP
Classification Title RANGE A B C D E F
Senior Water Meter Service WIQ 493 4170 4382 4606 4841 5087 5347
Skilled Maintenance Wkr-Water 490 4108 4317 4537 4769 5012 5267
Water Maintenance Leadworker 510 4538 4770 5013 5269 5538 5820
Water Maintenance Worker I 451 3382 3554 3735 3926 4126 4336
Water Maintenance Worker II 471 3736 3927 4127 4338 4559 4791
Water Meter Service Worker I 459 3519 3699 3887 4086 4294 4513
Water Meter Service Worker II 479 3888 4087 4295 4514 4744 4986
Water Plant Operator I 484 3987 4190 4404 4628 4864 5112
Water Plant Operator II 504 4405 4629 4865 5114 5374 5648
Water Yard Storekeeper 481 3927 4128 4338 4559 4792 5036
EFFECTIVE JANUARY 5,2020
3.0% Across the Board Salary Increase
NEW STEP STEP STEP STEP STEP STEP
Classification Title RANGE A B C D E F
Senior Water Meter Service Wkr 499 4296 4515 4746 4988 5242 5509
Skilled Maintenance Wkr-Water 496 4232 4448 4675 4914 5164 5427
Water Maintenance Leadworker 516 4676 4915 5166 5429 5706 5997
Water Maintenance Worker I 457 3485 3662 3848 4045 4251 4468
Water Maintenance Worker II 477 3850 4046 4252 4469 4697 4937
Water Meter Service Worker I 465 3626 3811 4005 4210 4424 4650
Water Meter Service Worker II 485 4006 4211 4426 4651 4888 5138
Water Plant Operator I 490 4108 4317 4537 4769 5012 5267
Water Plant Operator II 510 4538 4770 5013 5269 5538 5820
Water Yazd Storekeeper 487 4046 4253 4470 4697 4938 5189
Resolution No. 11198 10
APPENDIX "A" (Continued)
WATER DIVISON EMPLOYEES' ASSOCIATION
MONTHLY SALARY RANGES
EFFECTIVE JANUARY 3. 2021
3.0% Across the Board Salary Increase
NEW STEP STEP STEP STEP STEP STEP
Classification Title RANGE A B C D E F
Senior Water Meter Service Wkr 505 4427 4652 4890 5139 5401 5677
Skilled Maintenance Wkr-Water 502 4361 4584 4817 5063 5321 5593
Water Maintenance Leadworker 522 4818 5064 5322 5594 5879 6179
Water Maintenance Worker I 463 3590 3774 3965 4168 4381 4604
Water Maintenance Worker II 483 3966 4169 4381 4605 4840 5086
Water Meter Service Worker I 471 3736 3927 4127 4338 4559 4791
Water Meter Service Worker II 491 4129 4339 4560 4793 5037 5293
Water Plant Operator I 496 4232 4448 4675 4914 5164 5427
Water Plant Operator II 516 4676 4915 5166 5429 5706 5997
WaterYazdStorekeeper 493 4170 4382 4606 4841 5087 5347
EFFECTIVE JANUARY 2. 2022
3.0% Across the Board Salary Increase
NEW STEP STEP STEP STEP STEP STEP
Classification Title RANGE A B C D E F
Senior Water Meter Service V kr 511 4561 4794 5038 5295 5566 5849
SkilledMaintenanceWkr-Water 508 4493 4723 4963 5217 5483 5762
Water Maintenance Leadworker 528 4965 5218 5484 5764 6058 6367
Water Maintenance Worker I 469 3699 3887 4086 4294 4513 4744
Water Maintenance Worker II 489 4087 4296 4515 4745 4987 5241
Water Meter Service Worker I 477 3850 4046 4252 4469 4697 4937
Water Meter Service Worker II 497 4254 4470 4698 4938 5190 5455
Water Plant Operator I 502 4361 4584 4817 5063 5321 5593
Water Plant Operator II 522 4818 5064 5322 5594 5879 6179
Water Yard Storekeeper 499 4296 4515 4746 4988 5242 5509
Resolution No. 11198 I 1